JCDC and District 10 FD meeting, Nov 2006

Note: This document belongs before the January 2007 presentation to council but it is too much work to reshuffle the documents. Rita

JCDC - District 10 Executive Meeting re special resolution on divestiture
November 24, 2006 – Halifax
Bill Barrett, District 10 Secretary, Wilf MacNeil, District 10 Treasurer,
Don Peverill, JCDC Lawyer & Board Member,
Betty MacNeil, Community Planning Committee Chair,
Rita Campbell, JCDC Chair, Howard MacIntyre, JCDC Secretary

Discussion on the value of the JCDC property.

The Fire Department is in a position to accept charitable donations. JCDC has the option to retire member loans by giving member loan holders a tax receipt for making a donation to a charitable organization – the fire department. The receipt would give rebate for a percentage of the individual member loan.

• An Equity Tax Credit is normally given for a new limited company where new money is invested and jobs created – perhaps a consideration at a later date.
• The value of the property is reflected in the tax assessment. Property taxes have been paid by way of exemption as per municipal by-law 56. These may be repayable should the property be sold, although if transferred to a similar organization this may not follow. The Fire Department also gets an exemption although it is not clear whether these taxes are forgiven or just deferred.
• Enduring property – can a charitable organization own real property? Written permission is required from Revenue Canada.
• Consider the option of a 99 year lease to the Fire Department if Revenue Canada won’t approve ownership.
• There is a possibility that members will want their investment back. It will be necessary to determine how many member loans were taken out by individual members. JCDC Policy on withdrawal prevents run on the bank.

Discussion on the mortgage on JCDC & formation of new consortium

• JCDC is paying interest only and there are about 6-1/2 months before current funds run out.
• If the title to the property is transferred to the fire department or taken on by a consortium, a new mortgage will be entered into with League and it should cover the additional costs of appraisals and assessment by structural engineer. We need to budget for what needs to be done and include this in the new mortgage. To make any progress in paying down a mortgage in the range of $20,000 will require a monthly payment approaching $300.
• An approach should be made to the parish council to determine any interest in being part of a consortium with JCDC & Fire Department – their involvement would mean that most interest groups in the community are covered.
• JCDC would like to see a strong expression of interest from the Fire Department. The equity/debt situation related to the property should be strong on the equity given the potential value of 5 acres on the Bras d’Or Lakes.
• JCDC should remain involved since they can go after funding in circumstances where a charitable organization can’t.
• Other options can be considered for raising cash – selling off an acre or subdivision, but we have to be aware of septic system implications.
• The JCDC property needs to be converted to the new provincial land registration system.

Discussion on Board and general insurance.

• All insurance has been cancelled.
• Sign is up and the gate is closed.
• No amount of warning will absolve us from liability if there is a clear hazard on the property.
• There is no money to finance renewed insurance, appraisals or structural assessment.

To Do List

Contact Inspector of Coops to renew JCDC Registration & file extraordinary resolution for transfer of property (Betty)

Get a cost of an appraisal of JCDC property – look for some concession on cost before proceeding. (Wilf)

Get the cost of having a structural engineer do an assessment of the property (Betty )
Look into the process of transferring real property from JCDC to District 10 Red Islands Volunteer Fire Department. (Don)

Approach Dan Cash, Parish Council about being part of a consortium to take over JCDC property (Betty)

Investigate the cost of insurance on property only (Howard)
Provide a Letter of Intent to JCDC that the Fire Department will “undertake the work and give earnest money” (Bill)

Communicate with JCDC member loan holders, residents/fire department stakeholders, community through mail-out, parish bulletin once strategy formed. Cape Breton Post asked to be contacted once we have a plan. (Betty )

Prepare a presentation to council from the Planning Committee once consortium is described asking for money for costs associated with appraisals, assessments, sewer upgrade – phased approach – target January (Betty

Give Howard the process for registering the JCDC property on the new land system (Don/Howard)